Abuja, Nigeria – The Federal Government’s revenue from the Electronic Money Transfer Levy (EMTL) reached an all-time high of N31.2 billion in December 2024, following the extension of the levy to fintech transactions.
This represents a 107% increase compared to the N15.046 billion collected in November, according to data from the Federation Account Allocation Committee (FAAC).
For December 2024, the Federal, State, and Local governments collectively shared N1.424 trillion in revenue, comprising statutory revenue, Value Added Tax (VAT), and EMTL. The sharp rise in EMTL revenue is attributed to the levy’s inclusion in fintech platforms starting December 1, 2024.
Fintech companies such as PalmPay, OPay, and Moniepoint began deducting the N50 EMTL fee from electronic money transfers valued at N10,000 and above. This change marked the end of a previously fee-free experience for some customers on these platforms.
In a statement to its users, OPay clarified, “It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.”
What is EMTL?
The Electronic Money Transfer Levy is a one-time N50 charge applied to electronic transfers of N10,000 or more in Nigerian-licensed banks or financial institutions. Exceptions include:
- Transfers below N10,000
- Transfers to one’s own account
- Transfers between accounts owned by the same person within the same bank
The levy, introduced in the Finance Act of 2020, was designed to promote electronic funds transfers while serving as a revenue-generating mechanism. Revenue collected from EMTL is distributed among the three tiers of government: 15% to the Federal Government, 50% to State Governments, and 35% to Local Governments.
Expansion to Fintech Platforms and Foreign Currency
The Federal Inland Revenue Service (FIRS) expanded the levy in December 2023, mandating deposit money banks to deduct and remit EMTL on foreign currency (FCY) transactions, in addition to the local currency transactions to which it previously applied. Banks also began retrospective deductions of EMTL on old foreign currency transactions conducted between 2021 and 2023, as directed by the FIRS.
The recent extension of EMTL to fintech platforms has significantly contributed to the government’s efforts to boost revenue, as evidenced by the December 2024 collections.
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